7259.T
Aisin Seiki Co Ltd
Price:  
1,889.5 
JPY
Volume:  
1,816,600
Japan | Auto Components

7259.T WACC - Weighted Average Cost of Capital

The WACC of Aisin Seiki Co Ltd (7259.T) is 7.4%.

The Cost of Equity of Aisin Seiki Co Ltd (7259.T) is 9.5%.
The Cost of Debt of Aisin Seiki Co Ltd (7259.T) is 4.25%.

RangeSelected
Cost of equity8.1% - 10.9%9.5%
Tax rate28.5% - 30.9%29.7%
Cost of debt4.0% - 4.5%4.25%
WACC6.4% - 8.4%7.4%
WACC

7259.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.11.2
Additional risk adjustments0.0%0.5%
Cost of equity8.1%10.9%
Tax rate28.5%30.9%
Debt/Equity ratio
0.490.49
Cost of debt4.0%4.5%
After-tax WACC6.4%8.4%
Selected WACC7.4%

7259.T's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 7259.T:

cost_of_equity (9.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.